Samsung Heavy's preferred stocks surge 14-fold, trading suspended anew

Trading of Samsung Heavy Industries Co.'s preferred stocks was again suspended Thursday at the Korean Stock Exchange after an abnormal 14-fold rise in prices over 13 sessions without a strong reason.

Analysts suspect some scheme is causing the extraordinary development
in Samsung Heavy, whose relatively small outstanding shares of 114,000 are capitalized at 85.4 billion won as of Wednesday.

Trading of the said stocks was also suspended on June 9 and June 12 due to their unusual increase in prices.

The said stocks closed at 744,000 won on Wednesday, soaring from 13.7 times from the June 1 closing price of 54,500 won.

Common shares also advanced 30 percent over the same period, closing at 6,470 won from 4,980 won.

Shares in Samsung Heavy, as well as in Daewoo Shipbuilding & Marine Engineering Co., and Korea Shipbuilding & Offshore Engineering Co. traded sharply higher due to news of a 23 trillion won deal to build about 100 liquefied natural gas carriers from Qatar.

But analysts say that deal alone is not enough to drive the extraordinary surge in prices of Samsung Heavy's preferred stock.